The ABC’s of Finance
Contributors
t a young age, we begin our education and learn the basics of mathematics, history, and other formal schooling related topics. We learn to wear our seatbelt and wait for the crosswalk to signal OK before we cross the road. At almost every point in our lives, we pick things up along the way either through osmosis or formal education. But an area that has fallen by the wayside is personal finance.
Ironically, at a young age, many of us begin making very adult and significant decisions related to college loans and cash flow before we fully understand the impact such decisions may have down the road. And to make matters worse, many of us haven’t learned the benefits of saving and compounding. Without understanding the basics, it is easy to see how as a topic gets further and further removed from our daily practices, the scarier it is to learn. But it doesn’t have to be this way.
Whether you are working with a financial advisor or not, we believe financial literacy is imperative. There is a common misconception that if you hire a professional, you don’t “need” to understand the ins and outs of what they do on your behalf. But we disagree. We believe that when you have a better understanding of personal finance and why investment decisions are made, you ultimately make better decisions related to spending, saving, borrowing, and legacy planning.
Of course, we understand that every client is different and their level of involvement is completely up to them – but we strongly encourage you to ask questions when you don’t understand a concept or are curious about something you read or saw in the news. In essence, our aim is not only to support you, but empower you at the same time. This dual objective can set the stage for a more collaborative and productive experience.
Just as it is our goal to be in your corner and support your decision making as it relates to your personal finances, we strive to keep you informed and educated along the way. We encourage you to engage with your children and family members so they are involved and have a basic understanding of personal finance and management as well. If you believe a member of your family would benefit from coming in to speak with us about the ABC’s of finance, we are happy to support this process.